From $0 to $8 Million
This past week at the 7FA Mastermind event I was awarded the $8 Million Agency award. I wasn’t really prepared to speak about what it meant, or how I got there.
After the session, I had great conversations with people who appreciated my words. As we talked I was recounting the years it took to build this company and after I spoke with each person I was like “Oh, I wish I’d told them this.”
So on the flight home, I decided to chronicle my entire journey. I wanted to do this because I recall how lonely this journey was from 2008-2016. And even since 2016, it’s been lonely. Let’s face it, it’s tough to talk to others about your trials and tribualations.
SIDEBAR FOR MY RESTAURANT OWNERS
What you’re about to read is my journey as a marketing company, so while it might not seem relevant, it is. The struggles, lessons, and hustle are all the same. To put things in perspective most marketing companies have annual revenue of $200-300,000 and are striving to hit seven figures, like I was in 2016. It’s like a restaurant doing $500,000 aiming for $1.5 million.
Originally I was only writing this for a private Facebook group of the members of 7FA. The reason I decided to edit it and publish it on my blog was simple. I wanted to challenge a good friend of mine, Avery Ward, to write the same post but for his restaurant. WHY? Because he took over a family pizza joint doing $500K 7 years ago and has grown it to over $5 million!
Now that you have some backstory, he’s the goal for our company. As you can tell from the title of this blog, we are an $8 million marketing company at this point, and as you’ll see below that number has been going up every year since 2016 when we decided to make the shift from Me & Ashley, to what you see today.
We are on pace to hit $30 million by mid-2027. My BHAG (big hairy audacious goal) is $100 million by 2030. To put that crazy $100M # in perspective, that means that our marketing firm will be like a national restaurant franchise with a few hundred locations.
NOW BACK TO THE STORY
As I started to write I visualized that moment when I had the microphone in front of all of you on Wednesday, I thought “What would Matt Plapp from 2017 want to hear during that speech?”
I also thought about what I’d think about what someone in that position would say, and how it would relate to me.
Would I believe I could do that?
Would I think it was achievable for me?
Would I have the self-belief that “I was that guy?”
I thought back to my first marketing agency intensive with Billy Gene in the Fall of 2016. How at that moment we did $20-30K each month and what I would take from someone doing 20x that.
Could I relate?
Over the past five days I’ve thought a lot about what I should have said, could have said and now WANT to say.
Most importantly I want all of you to know that you 100% can hit $8 million. It’s simply a number. Think about it this way.
You’ve all done $80,000 in 1 year right? Well, $800,000 is you simply doing that ten times.
And $8 million is you doing what you did to hit $800,000 ten times.
Math, right 🙂
The first time I heard this example it made me say “he’s right, I can do 10x this” and then I scared the shit out of myself because I now saw on paper that $100 million could be done. $100 Million Matt, have you mixed too much coffee and Red Bull Matt?
So I’m going to take you on a journey, if you’ve made it this far, you’ll really enjoy the rest.
This $8 million award isn’t the product of the past 12 months, 36 months, heck it’s not a product of the past 60 months.
It’s the product of the past 25 years.
On March 13th, 1999, I started selling radio advertising at WGRR. This career would last 4 years, and I’d make a lot of money. But more importantly, I’d be shaping the mindset that I’d use 9 years later to launch my agency in 2008.
And if having a full-time job wasn’t enough, in July 1999 I bought a book on web design and built a website for an idea my dad had, an online boat and RV dealership. I knew absolutely nothing about the internet except it seemed like it had a bright future. To put that in layman’s terms, I was not a techie. In fact I made fun of my wife for using this thing called EMAIL 🙂
From July 1999 until March 2003 I would do both of these jobs at 100% of my ability 7 days per week.
In radio, I became one of the top sales reps for our four radio stations and one of the top in all of Cincinnati. But that wasn’t because I knew how to sell, it was because of my Dad. My father is the Michael Jordan of sales and he took me under his wing when I got the radio job, putting me through his own “sales school.” The biggest thing I learned from him was to be a “consultive seller.” He always told me “Don’t sell something they don’t need, listen and only sell what helps solve their problems.” As I matured as a radio sales rep I took this to heart, commonly walking away from deals because I knew they didn’t need what I had. I choose long-term relationships and trust over a paycheck.
In March 2003 I resigned from my job at the radio station to focus on our dealership. What had started as a website was now a 2 location dealership doing $5 million. Over the next 5 years, we would grow to $15 million and one of the top fishing boat dealerships in the country. We dominated the internet and were the top search result on this website called GOOGLE for all things fishing boat-related. I accidentally learned this thing I’d later learn was called “SEO.”
Flash forward to 2006 and my former radio clients were asking me for advice on how to build websites and market their companies on the internet. I had accidentally become a legend in the boat business nationwide with our online presence. And with “fame” came many articles published in industry magazines and local papers about how this small boat dealership was using the internet to sell boats. If you come to our HQ in Florence KY you’ll see many of these articles hanging in our hallways. I’m not sure what caused me to hang onto them many years ago, but I’m glad I did.
As I started to help former radio clients with their websites and SEO I realized how much I loved helping others. And in late 2007 my brother, father, and I all realized we hated the boat business. We’d grown the business on the backs of the banks and the stress was unbearable. Plus, none of us enjoyed managing 40 employees. So in January 2008, we put in place a plan to exit the business by year’s end.
I started working on my agency and I also ended up taking a gig back in radio with the Cincinnati Reds and Bengals radio network. As we wound down the dealership, I was also back to two full-time jobs and running the dealership on nights and weekends. But, I figured I could weather the storm of 3 jobs for a year or two.
Well, one of those jobs went away faster than expected. As you all know the economy collapsed in the Summer of 2008 and so did our dealership.
Our boat dealership went from doing $1.4 million in July 2007 to $48,000 in July 2008. We lost MILLIONS that summer trying to save it, but in the end, we closed up shop sooner than we thought and without the 7-figure exit we had planned 🙁
But with all bad comes good.
At the end of the day, it was a blessing in disguise. It forced me to step up my game on both fronts, the agency and radio gig. I had no choice but to get uncomfortable and put my foot on the gas.
I’m telling you all this to frame the lessons I learned from 1999 to 2008 that made my success as an agency owner a little easier. So now onto the good stuff.
1st – I had no choice. Losing wasn’t an option. This forced me to get really uncomfortable and run harder than ever. You know the old saying “burn the ships”, well I didn’t have to burn my ships, the economy handled that for me. (As I’m proofing this it hit me the irony of that, being we were a boat dealership)
2nd – During my time in radio I learned what would end up being my calling card, ROI. The question I hated asking my radio clients was “How are the spots working?” Clients had no clue, and neither did I. As I learned about internet marketing through our boat dealerships online success from 2003-2008 I came to love it. I could see when a customer got an email, responded with a question, walked into the dealership a week later, and BOUGHT a boat. I could finally answer the age-old question “How are the ads working.”
3rd – I learned what it was like to buy advertising and marketing and not see results. I learned the pain of money leaving the bank account and nothing coming back from those efforts. I think that’s something many marketing people don’t have experience with. In my opinion, It’s much easier to appreciate the need for results when you have felt the pain of writing the check.
4th – I learned to see the pain in a business owner’s eyes. I learned this through my own experience. I recall nights I had to sleep on the sofa with the TV on just so I could fall asleep. Those were the nights before payroll was hitting and I didn’t know if the money would be in the account the next day. On my second stint in radio, I recall a conversation with a guy who owned a transmission company and was a client. I could see it in his eyes, he was in a bad place, and so I asked him “How can I help, you’re not doing well are you?” I was right and I helped him buy marketing from someone else, who I thought had a product better suited for his needs.
5th – I learned the importance of a well-rounded marketing plan executed over a long period. You see, all advertising works. Once you have the right target, it’s simply a matter of putting together a plan to stay in front of them for a LONG TIME! In our boat dealership, I had a plan that covered every possible angle and I had no intentions of giving up on it. That’s why from 2002 – 2005 we dominated every fishing boat dealership in the country. They were focused on marketing that works NOW, while I was working on a plan that would work forever …minus the economy crashing 🙂
I’ve also proved #5 with my agency. If you know me, then you know that we’ve been doing the same thing for many years. From my orange branding, content, ads, and emails, we’ve not stopped and we won’t!
OK, so now onto what my journey looked like from 2008 to today.
I’m going to give you a rundown of our growth year by year and some notes on what I learned or changed along the way. I’ll put next to each year what I recall my mindset was at that time and what our average monthly revenue was that year.
2008 = “What Would You Do If You Were Me”
2008 Average MRR -$2,500-5,000
How I started my agency was pure and quite simple. I reached out to the network I had developed over the years and said “Here’s my idea on starting a marketing agency, what do you think? What would you do if you were me and how would you charge people?” The funny thing was, 4 out of the first 5 people I asked that question said “shit, figure it out and you’re hired.” They were friends and my first 4 clients. I used what they told me they needed and built from there.
2009 = “Paid With $4,000 In A Brown Bag”
2009 Average MRR – $5-7,500
This was a crazy year since I was in radio full-time and building the agency. I wasn’t hitting every radio client with my agency pitch, but many found out and a few became clients. Ironically I was also buying media on my station and every other one in Cincinnati, for my agency clients. This made for some interesting conversations with the radio accounting department, as they’d never had a sales rep paying client bills 🙂
As I thought back on this time a funny, and strange memory came up. I recalled the time a client paid me monthly with $4,000 cash in a brown bag. This has a SIZABLE company in Cincinnati that if I mentioned their name, everyone here would know who they are. I still to this day have no idea why I wasn’t paid through traditional methods. My assumption was the marketing director didn’t want his bosses to know I was the one doing the work, out of concern for his job, but that is just speculation. But I took my money, reported it like all other income, and went on my way.
2010 = “This Better Work Matt”
2010 Average MRR $8,500
In the Fall of 2009, I left the radio job and decided to focus 100% on the agency. During that year of doing both, I had an illusion that I could do that for a while. When I left I was making around $160,000 in radio and I had the agency hovering around $100K. My last radio commission check in November 2009 was around $25,000, so heading into 2010 I had a big ass hole to fill and I turned it up a few notches.
2011 = “I Need Help”
2011 Average MRR $16,000
June 2011 was a HUGE month for me. It’s when I put my fears aside and hired my first employee. I had thought I could do this alone, but I found out quickly that I was not a business owner, I was employee #1! I had bought myself a job, a damn busy one at that. So I sucked it up and realized I could not do this alone. I stood up at a BNI meeting in April and asked for a referral to someone who understood the internet, knew how to use a smartphone, understood social media and only needed 5-10 hours per week. Peggy Sparks referred her 22-year-old daughter to me, and it forever changed the trajectory of this company. Thinking back, I can’t help but think how freaking lucky I was to find someone as solid as Ashley on my first hire. Ashley is still by my side and is in charge of DRYVER, our restaurant marketing software company.
2012-2014 = “Run & Gun”
2012 Average MRR $16,862
2103 Average MRR $15,208
2014 Average MRR $17,137
In these 3 years, it was exactly what it says above, RUN & GUN! I was doing seminars every month, BNI every week and networking like my life depended on it. One thing that helped during these 3 years was the fact I only took on specific clients and knew how to tell others no. This is why we only lost one client from 2008 to 2018, our churn was basically zero. One thing that also sticks out to me is how I was ultra-focused on delivering an amazing product/service and not growing revenue. I think a lot of times we try to scale something without actually knowing that we have an amazing product. I see this in the restaurant business all the time. People open one location and a year later are already opening stores two and three, even though the first one hasn’t made money and reviews are average. I wish I could say not growing these three years was on purpose, but it wasn’t. I simply did not have enough time to perform at a high level for any more clients, so this is where we landed. Plus, I wasn’t worried about making a lot of money, I simply wanted to do something that I enjoyed and pay the bills.
2015 “Shit’s About To Get Real!”
2015 Average MRR $19,000
At this time we had 34 clients from 31 industries. I had no clue that a company like ours should “niche down.” I didn’t know you could focus on one industry and go all in like that, but I soon found out. Everything that we did for clients was a one-off campaign and with clients from all types of industries, it meant that we had very little that we could replicate between clients.
Then, in April 2015 I found what I’d been looking for. A repeatable and duplicatable campaign that worked across multiple clients. The one industry we did have multiple clients in, was the restaurant business. We had 9 restaurants at the time, and when I figured out how to create marketing funnels and campaigns that I could use across all six I was in love. By the end of 2015, I realized I had something here, but I didn’t know what the next step was.
2016-2017 “Build What You Need”
2016 Average MRR $21,000
2017 Average MRR $26,000
The irony of how success found me this year is, well ironic. I was in the midst of building a product that I needed for my restaurant clients. Ashley and I had become really good at gaining Facebook engagements and getting people to take us up on our offers, but something was missing. I needed a tool that would connect to our marketing campaigns that allowed me to gain customer data and deliver to them a trackable offer. The problem was, I had NO CLUE how to do it. In fact, the prior year I’d gone to the National Restaurant Show with hopes of finding this product, and all that I found there were marketing tactics from the 1980s.
Since that time I’ve read many books about major companies we all buy from every day and how their products were a product of a problem someone had. As I look back on this, I smile because all I wanted was to find a way to show my clients how the marketing was working and to drive sales. I didn’t have some evil plan to build a product to sell and take over the world, I just wanted to help and prove what I knew was working once and for all.
This is where IRONY, or maybe the universe strikes. It was June 2016 and I saw a Facebook ad from this crazy guy named “Billy Gene” of Billy Gene Is Marketing. The ad spoke to me. It promised me a flash drive of exactly what I needed in exchange for, wait for it… my contact info:) I could get a free download for my name, email, and phone number. Or I could upgrade for $25 and have a flash drive mailed to me with everything on it. And there was a free webinar that weekend just for agency owners. Long story short, I bought the flash drive, paid for an appointment, and bought EVERY DAMN THING Billy had to sell for the next three years.
As I type this out I am smiling ear to ear. At the time I had no idea what he was doing to me, exactly what I wanted to do for my restaurant clients.
Billy’s programs also introduced me to some great entry-level tech that I could use to build my own system. In 2017 I launched what I called the “ROI Engine” and it worked AMAZING! So with that, I launched my agency nationwide and gained 19 clients. All of which we lost in under six months. Yep, I’d gone from an agency that NEVER lost a client to one that lost them all, over and over again.
So as I sat in the 7FA event last week and heard people talk about their disappointing results. Agency owners one to three years into their journey with 10-20% churn rate and I laughed knowing that I had 100% churn early on as we scaled.
What I’d like to pass onto other agency owners is this. Many of you are trying to do in a few years what took me MANY YEARS. So give yourself a break and realize hard shit is, well HARD. And it takes time.
2018 – 2020 “Stay Focused, We Know What Works”
2018 Average MRR $44,000
2019 Average MRR $73,000
2020 Average MRR $76,000
These 3 years were tough. First, it was avoiding the “shiny object” syndrome, and second “Covid.” 2017 was my introduction to business masterminding. I now had hundreds of friends around the world in the exact business as me. This was great on one hand, and terrible on the other. Masterminding is the ultimate cheat code, it’s what has helped me build what we have today. I can learn from friends who are on the same path as me, some behind and some ahead of me. It’s a great way to find out what potholes to avoid and how to optimize what we are doing.
But there’s also the temptation to fall for a new shiny THING! You see a friend cruising it on this thing called “Bitcoin” and you have to remind yourself that you can’t do everything. I was pretty fortunate that I didn’t fall for many of those items, but I did have one big hiccup. In 2018 after I wrote my first book, Don’t 86 Your Restaurant Sales, I launched a restaurant training to help us gain more clients. It attracted 100 customers in the first push, but 99 of those were marketing companies like mine. I didn’t know how to say no and thought “I can do this and run our restaurant agency. So with that from mid-2018 to the end of 2019, I ran an agency training program and my agency. And while this gave me a short-term victory with some cash, it hurt my long-term growth. My coach Billy Gene and a friend Mike Arce had both told me to pick a lane, but I knew better than them (at least I thought I did). By doing what I did I had split my attention and hurt our core business. So in late 2019 I closed down the program and told myself ONE LANE MATT! But as you’ll see in my next chapter, I don’t always listen to myself.
2021-2023 “Oops I Did It Again” (cue Brittney)
2021 Average MRR $120,000
2022 Average MRR $222,000
2023 Average MRR $406,000
I did it again, by accident. In 2020 my team and I discovered something massive. Everything we’d been doing for years was working, but for some clients, it was working much better than it was for others.
BUT WHY?
Well, it turns out your story and use of social media when you’re a mom-and-pop restaurant is much more important than anyone ever thought. During the pandemic, the big brands, the chains, used their war chest of money to advertise like crazy and drive their sales. Meanwhile, the independent restaurants were stuck getting their asses kicked. But not all of them were losing. The ones we saw winning had figured out that social media wasn’t just a replacement for “Money Mailer style marketing,” but a place to connect with their community. They were using Facebook Lives to tell stories and gain engagement.
That was all I needed to push me over the edge with an idea I’d created a few years earlier, America’s Best Restaurants, a media company for small local restaurants. What started as a marketing idea for our restaurant marketing agency quickly grew to its separate company with 29 employees and an overhead of $4 million…HOLY SHIT!
My goal with America’s Best Restaurants when I thought of the idea way back in 2018 was two prong.
First, I wanted to create a social media first media company focused on broadcasting the stories of independent restaurants. Second, I wanted to create a marketing brand that restaurant owners trusted and that would help elevate the badass marketing that we could do on their behalf.
What I didn’t plan on, was having 4 Mercedes Vans and 30 or so employees filming, editing, and marketing these episodes.
During this time my biggest regret is losing sight of our finances. I put so much money into our product and sales, that I forgot we should probably have an accounting team. Funny fact, up until November of 2024 Matt Plapp did every single thing in our company as it related to money, HR, and payroll. On top of my duties as our CEO and head of sales, I was also our bookkeeper and CFO 🙂 I logged every client payment, collected past-due balances, and ran payroll. Part of that was due to fear of someone stealing from me, but most of it was being thick-headed and thinking ONLY MATT CAN DO THIS! Looking back, had we hired a CFO 2 years prior we’d easily have seven figures in the bank and probably be twice the size we are now, but it is what it is. You live and you learn. Our new CFO Bruce, starts in two weeks!!!
One last thing from these years. With ABR Growing how it did from a marketing initiative to its own company, it did exactly what my agency training program did in 2018, it split my attention. Up to early 2023, I was pretty bummed that I could not get both sides to grow how I wanted, but I eventually realized what we were doing was the ultimate long-term play, and it would help us grow when the time was right and at a level never seen before.
2024 – “The Hardest Part About Writing Your Story Is Knowing Your Worth The Ink”
Average MRR $600,000 (aiming to end 2024 around $850,000 MRR)
Now that you’re up to date, let’s talk about the final piece to the puzzle that we put in place at the end of 2023. I’ve not talked about this yet, but in 2021 our team made our first Vivid Vision. An eight-page document that laid out what we wanted to become by December 31st, 2023. One of the visions was to create a restaurant-exclusive software, Database Dynamite. A software that took everything we did with new customer acquisition through social media and combined it with restaurant loyalty, rewards, and customer communication (email, text, messenger, direct mail).
The reason I felt this software was needed was so we could complete the marketing puzzle and show our restaurant clients the lifetime value of the database we were helping them build. Up to that point, we’d only been able to show them the front-end results of our marketing programs and “hoped” they understood the value of the database and its long-term implications.
But, as we all figure out over time, we as marketers appreciate customer data and the attention you can gain from it WAYYYYYY more than the clients. Clients simply want to drive sales. They want to see results today for what they paid for yesterday. And while I don’t always agree with that, I realize that we have to be able to deliver what they need now, while helping to build the future. This is why we acquired Repeat Returns on November 3rd, 2023, and have spent the past 7 months combining it with our marketing services agency to create our new company, DRYVER!
DRYVER – Helping Restaurants DRIVE sales.
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So, kids, that’s my story. We’ve got a long way to go before I declare success, but I am damn proud of what we’ve done up to this point.
Stay tuned…